Monopoly power GapFill

There are key differences between a pure monopoly and monopoly power which are important to understand. In a pure monopoly there is a complete  economy of scale barrier to entrysubstitute goodsregulation for all potential competitors, and an absence of  economies of scaleregulationsubstitute goodsbarriers to entry for consumers. The firm has control over the industry it is located in. It is able to exert considerable influence over  asymmetric informationeconomies of scaleregulationbarriers to entry in order to maintain its position. Pure monopolies occur most frequently on a  globalnationalEuropeanlocal basis.

Monopoly power refers to a firm which has a dominant position in an industry, but does not entirely control it. A firm with monopoly power can take advantage of  regulationeconomies of scaleasymmetric informationbarriers to entry, and engage in  price settingprice cuttingvalue pricingpredatory pricing which pushes prices artificially higher than the market rate. This helps to boost profits and limit competition. It can also take advantage of a large  barrier to entryasymmetric informationeconomy of scaleregulation to drive down costs. Although substitute goods exist, a firm with monopoly power often uses  advertisingbarrier to entryasymmetric informationregulation to limit consumer information about alternatives. But it may be subject to regulatory pressures if it tries to expand further.